Overnight Markets And News

Sep E-mini S&Ps (ESU18 +0.35%) this morning are up +0.35% and European stocks are up +0.37% on a temporary respite from Turkey’s financial turmoil. The Turkish lira rose more than 5% against the dollar and Turkey’s 10-year government bond yield fell more than 100 bp to 21.46%. White House National Security Adviser Bolton told Turkey’s ambassador that the U.S. will not negotiate with Turkey on sanctions or tariffs until a detained American pastor is freed. European stocks also found support from an upward revision to Eurozone Q2 GDP and to a stronger-than-expected German Aug ZEW economic growth survey. Asian stocks settled mixed: Japan +2.28%, Hong Kong -0.66%, China -0.18%, Taiwan +0.70%, Australia +0.76%, Singapore -0.08%, South Korea +0.42%, India +0.55%. Chinese stocks closed lower on signs of a slowdown in economic momentum after China Jul industrial production and Jul retail sales both rose less than expected.

The dollar index (DXY00 -0.10%) is down -0.11%. EUR/USD (^EURUSD -0.05%) is down -0.05%. USD/JPY (^USDJPY+0.20%) is up +0.21%.

Sep 10-year T-note prices (ZNU18 -0-050) are down -6 ticks.

The German Aug ZEW survey expectations of economic growth rose +11.0 to -13.7, stronger than expectations of +3.4 to -21.3.

Eurozone Q2 GDP was revised upward to +0.4% q/q and +2.2% y/y, stronger than expectations of no change at +0.3% q/q and +2.1% y/y.

Eurozone Jun industrial production fell -0.7% m/m, weaker than expectations of -0.4% m/m.

The UK Jun ILO unemployment rate unexpectedly fell -0.2 to 4.0%, better than expectations of no change at 4.2% and the lowest in 43-1/3 years.

UK Jun avg weekly earnings rose +2.4% 3-mo avg/year-over-year, weaker than expectations of +2.5% 3-mo avg/year-over-year. Jun avg weekly earnings ex-bonus rose +2.7% 3-mo avg/year-over-year, right on expectations.

China Jul industrial production rose +6.0% y/y, weaker than expectations of +6.3% y/y.